Latest News
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High Interest Rates Could Hit Housebuilder Shares
The UK housebuilding industry is facing a challenging time as higher mortgage rates put pressure on the market for new homes. This has led to concerns that profits will decline, leading to potential job cuts and reduced dividend payouts. Crest Nicholson is the latest company to issue a profit warning, expecting its pre-tax profits to…
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Watchdog Investigates UK Rental Market
The Competition and Markets Authority (CMA), the UK’s competition watchdog, has expressed concerns about the housing market, stating that a “significant minority” of landlords and letting agents may not be complying with consumer protection rules. The CMA has highlighted several areas of concern, including onerous guarantees, discrimination against certain tenants, and fees charged to older…
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Bank predicts 7% House Price Falls. But it’s “A Correction, not a Crash”
According to analysts at Deutsche Bank, UK house prices are expected to experience a further 3% to 3.5% correction, resulting in a total decline of 7% from peak to trough by the end of 2023. The Nationwide House Price index is currently down about 4.5% from its peak, however, the bank noted that this correction…
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The Most Profitable Places for Landlords
The UK property market is constantly changing and influenced by various factors such as the economy, politics, and regional considerations. For landlords looking to invest in buy-to-let or rental properties, the location is crucial in determining profitability. It’s not just about rental yields, but also capital appreciation, tenant demand, and local amenities. Currently, some of…
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Cash Buyers Snapping up Bargains
Cash buyers in the UK property market are gaining a bigger advantage over those using mortgages, as rising interest rates and higher prices make it harder for mortgage holders to compete. Data from Octane Capital showed that in June 2023, cash buyers were completing deals for £27,600 less than mortgage buyers, compared to a gap…
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REIT Time, Right Place for the Build to Rent Market?
Investors Chronicle looks at a potential REIT that could be perfectly positioned to capitalise on the UK’s rising rents and booming Build-to-Rent market. The cost of renting a home in the UK is increasing at an unprecedented rate, with record-breaking annual rent increases for 10 consecutive months. This trend is seen across all regions of…
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Edinburgh Short Term Let Controversy Continues
The controversy over short term lets in Edinburgh rumbles on. The Scottish Bed and Breakfast Association (SBBA) has reported that nearly two-thirds of Scottish B&B owners are considering closing their businesses due to new restrictions on short-term lets. The SBBA is urging the Scottish government to postpone the implementation of the licensing scheme, arguing that…
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The Most Affordable Areas to Buy a House
The Daily Mail discusses the impact of rising mortgage rates on homebuyers in the UK and reveals the most and least affordable areas to buy a home in each region. According to Hamptons International, one in four households moved to a more affordable area this year, up from one in five the previous year. This…
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Buy to Let Mortgage Rates Fall
According to data from Moneyfacts, buy-to-let rates are currently on the decline after steadily rising throughout much of the year. The average 5-year fixed rate for buy-to-let mortgages now stands at 6.47%, down from 6.72% at the beginning of August. Additionally, 2-year fixed rates have also decreased, now averaging at 6.66% compared to 6.88% earlier…
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Only 14% of Landlords Optimistic About Renters (Reform) Bill
The upcoming State of the Lettings Industry report, set to be released on September 12th, 2023, provides insights into the opinions of over 2,000 letting agents, landlords, and tenants in the UK. The report will cover various topics, including how agents feel about upcoming legislative changes, landlord considerations regarding reducing their portfolios, the industry’s perception…